CA ANZ releases professional conduct review

CA ANZ has released the results of its Professional Conduct Framework Review that it instigated in the wake of the KPMG exam cheating scandal where hundreds of employees who were members were involved.

The review was conducted by an 11-member committee and jointly chaired by CA ANZ chair John Palermo and chief executive Ainslie van Onselen.

An independent assessment of the review’s recommendations was conducted by former federal court justice Dennis Cowdroy, who also provided some of his own suggestions.

Ms van Onselen said the review was comprehensive in its focus on ensuring CA ANZ’s disciplinary bodies operated under clear processes that served the best interests of members and the public.

“As well as a range of procedural and efficiency improvements, the recommendations extend the existing features of the disciplinary framework to address events involving firms and the systemic and cultural issues underpinning them, that reflect poorly on our profession,” said Ms van Onselen.

“We will continue to reinforce the work we do to support our members’ deep knowledge and commitment to the Code of Ethics, which is a fundamental requirement of their ongoing membership.”

“This includes the wealth of resources available in our ethics hub as well as continuing to mandate ethics CPD for all members.”

Significant increase in fines for firm events

One of the key recommendations in the review is a fivefold increase in maximum fines for events involving firms, such as certain adverse findings by courts or regulators, criminal or civil convictions and conditions on firm registrations with regulators.

“Significantly increasing maximum fines is a meaningful development for a membership organisation like ours; it shows how we used this process to test the limits of our framework in the public interest and in line with community expectations,” said Ms van Onselen.

New powers for the Professional Conduct Committee

Under the current rules, if the PCC becomes aware of details of potential misconduct involving a former member, it has no power to initiate an investigation or make a disciplinary finding.

The review has recommended that the CA ANZ By-Laws 21(a) and 40 be amended to allow complaints against former members to be investigated and determined for recording on the former Member’s disciplinary record.

It has also called for new reporting guidance to be given to members who are principals of practice entities to clarify their existing obligation to notify the PCC of prescribed events involving firm events.

Documents procedures for handing down such notifications should be developed through the regulations.

Another recommendation was to give the Professional Conduct Committee new powers to engage a panel of experts to provide technical guidance on complex matters.

Expanding the scope of the Professional Conduct Oversight Committee

The review has also recommended that the role of Professional Conduct Oversight Committee (PCOC) in Australia to include oversight of CPD monitoring and quality review functions.

This would more closely align the role of the PCOC with the NZICA Regulatory Board.

The review has also recommended the introduction of a conciliation process.

Strengthening interim suspension powers

The review identified a lack of clarity in the rules relating to interim suspension and the grounds for making interim suspension decision.

It has called for the interim suspension provisions to be amended to make it clear that the Disciplinary Tribunal may make an interim suspension order if any of the conditions listed in the rule are satisfied.

The review also stated amendments should also be made to clarify that the power of the PCC to make an application to the Disciplinary Tribunal to make an interim suspension order applies to any or all of the Member’s membership, certificate of public practice, or relevant licences or specialisations.

It should also be clarified that applications can be made on an ex parte basis or on notice basis, with revocation, review and publication rules to enable immediate publication.

Ms van Onselen said while some recommendations have already been actioned as a matter of course, others will require amendments to the CA ANZ By-Laws, or NZICA Rules, which will be put to a Member vote in the lead up to the October AGM.

“I encourage all of our Members to engage with this process, and look forward to discussing the Review in further detail at our October AGM. “I would also like to take this opportunity to thank Mr Cowdroy for his extensive work in reviewing the report from the Committee.

“I would also like to take this opportunity to thank Mr Cowdroy for his extensive work in reviewing the report from the Committee.

“We have accepted all of his recommendations which were in scope and have referred the remaining ones for consideration and consultation with Members.”